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TMI Blog2024 (1) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has issued credit notes to the payer entity. The income thus accrued to the assessee is gross invoices less the credit notes issued by the assessee. The same amount, on net basis, would be reflected by the assessee in the financial statements. This figure tallies with the financial statement of the payer entity. Assessee has duly reconciled the amounts reflected in financial statement vis- -vis amount reflected in Form 26AS. Though income to the extent of credit notes issued by the assessee would never accrue to the assessee, nevertheless, TDS as been deducted against these payments and the same has been deducted against the assessee. Therefore, the assessee would be entitled for the credit of the same. The amount of credit notes co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the directions of Ld. Dispute Resolution Panel-2, Bengaluru (DRP) u/s 144C(5) of the Act dated 27-12-2022. The sole substantive grievance of the assessee is denial of Tax Deducted at Source (TDS) credit by lower authorities. The grounds raised by the assessee read as under: 1.1. The order of the learned Assessing Officer ( AO ) and the Hon'ble Dispute Resolution Panel ( DRP ) is contrary to canons of equity and natural justice, contrary to law and facts involved, not based on facts and circumstances of the case, contrary to mandatory provisions of the Income tax Act, 1961 ( Act ), lacks jurisdiction and is liable to be struck down. 1.2. On the facts and the circumstances of the case and in law, the learned AO and DRP has erred in not gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es whereas as per Form 26AS, the payer entity paid an amount of Rs. 69.83 Crores to the assessee after deducting tax at source for Rs. 7.62 Crores. 4. The assessee explained that the amount reflected in Form 26AS represents gross invoices raised by the assessee which, in turn, are based on the amounts reported by the deductor payer in its TDS returns. However, the assessee has raised few credit notes subsequent to raising of invoices which were not reflected in Form 26AS since the same would not have any TDS implications. It was also explained that the assessee raised invoices for Rs. 72.93 Crores against which credit notes were issued to the extent of Rs. 35.07 Crores. The assessee also submitted financials of deductor payer wherein the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be held to be the income of the assessee. Therefore, lower authorities are not justified in denying the credit of the same. The provisions of Sec. 155(14) would not apply since these provisions would apply only in cases where the TDS certificate is furnished later and where the income has not been disclosed in the return of income. In the present case, the income to the extent of credit notes would never accrue to the assessee and hence, there is no question of offering the same to tax. The Ld. CIT-DR has submitted that the assessee could have insisted deductor to file revise TDS return and claim the excess TDS amount from the deductor. However, once TDS is deducted and deposited with the Central government, the only mechanism with the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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